LatAm Agri & Foods: Chart of the week: Sorriso vs Paranaguá corn price differential

Research evidence excerpt

LatAm Agri & Foods: Chart of the week: Sorriso vs Paranaguá corn price differential

Global Research

27 July 2026ab

LatAm Agri & Foods Equities

AmericasChart of the week: Sorriso vs Paranaguá corn

price differential Food

Matheus Enfeldt

Analyst

matheus.enfeldt@ubs.com

Corn ethanol drives more expensive corn in MT +55-11-2767 6975

Historically, the differential between corn prices in Sorriso (MT) and Paranaguá (PR) Alberto Valerio

used to be largely in line with the freight cost between the two cities - as MT corn Analyst

production was mostly directed to exports - with Sorriso as the main corn producing alberto.valerio@ubs.com

region and Paranaguá the benchmark representing the Southern Corridor logistic +55-11-2767 6918

zone. However, these two indicators have detached, in our view due to the rising Victor Modanese

corn ethanol production in MT and region, coupled with an increasing share of the Associate Analyst

Northern Corridor as a route to export Center-West grains volumes. victor.modanese@ubs.com

+55-11-2767 6008

The rapid expansion of corn ethanol capacity in the state of MT has significantly Andressa Varotto

increased local demand for the feedstock. According to Imea, MT internal corn Analyst

consumption in the 2025/26 crop is expected to reach 22mn tons, up +85% vs andressa.varotto@ubs.com

2021/22. As a result, MT internal demand now accounts for 58% of its production, +55-11-2767 6654

up +18pp vs 2021/22.

On top of that, we flag that MT corn exports are increasingly exported via ports

located in Brazil's Northern Corridor. Between 2010-2015, exit points located in this

logistic zone accounted for 15% of MT corn exports on average. This figure increased

to 52% in 2020-2025.

As a result, the 'Paranaguá-Sorriso' corn price difference has detached from the